Time To Coin A Better Buck

May 10, 1995

At various times, societies have used beads, furs, even cognac, as money. Each has had an allure and quaintness, but in the United States, the feel of dollar bills stretching a wallet or purse gives a certain sense of prosperity and comfort, whether justified or not. Most people can't imagine life without the greenback.

But most people also want Washington to balance the federal budget and run the government more efficiently. And to aid in those endeavors, it makes enormous sense now to phase out the dollar bill and introduce a well-designed dollar coin.

Legislation to create such a coin has been kicking around Capitol Hill for eight years. In fact, there was a hearing in the House last week on the One Dollar Coin Act of 1995. Lest you think this is a small-change public policy debate, consider a few facts:

- Although estimates vary, most authorities and studies predict the introduction of a dollar coin and simultaneous elimination of the dollar bill would save Washington, and taxpayers, hundreds of millions of dollars over time. The average dollar bill lasts nearly a year and a half and costs 4 cents to print; a dollar coin would cost twice as much to mint, but it would last 30 years, for a clear overall economic edge.

- A dollar coin also would save money for mass transit systems like the Chicago Transit Authority. The CTA uses workers in its cash room to straighten and iron some of the 410,000 dollar bills it processes daily. A dollar coin would save the authority about $2.4 million a year.

- Vending machines, transit equipment and other devices can handle a properly designed dollar coin now, and for millions of consumers the new coin would make it easier and more convenient to buy lunch, use a pay phone or conduct thousands of other small, frequent transactions.

Opponents contend the push for a dollar coin, however, is an effort by the vending-machine industry to introduce $1 soft drinks and candy bars. And, they add, remember how the Susan B. Anthony dollar flopped when it was introduced in 1979, and don't forget that pants pockets will have to be reinforced.

The arguments are as thin as, well, a dollar bill. Competition among vending companies ought to restrain price increases, and many consumers will carry fewer coins overall than they do now in their pockets. The Susie B bombed because it looked and felt like a quarter and because Congress didn't have the courage to eliminate the dollar bill.

Most people don't like it when Washington forces them to change old habits. But for significant savings and a more efficient currency system, Americans should welcome a distinctive, gold-colored dollar coin and forget George Washington and the dollar bill.